Article Title

Author

Periodical Title

Modern Psychological Studies

Volume

21

Number

1

Page Numbers

pages 11-19

Department

Dept. of Psychology

Publisher

University of Tennessee at Chattanooga

Place of Publication

Chattanooga (Tenn.)

Date

2015

Abstract

This experiment evaluated the relationship between financial capacity, financial literacy, and their supposed predictors. The purpose of this study was to find the best overall predictor of financial capacity and financial literacy, while examining relationships among multiple variables. A neuropsychological battery consisting of eight measures was administered to a sample of 22 males and 28 females, all undergraduates at the University of North Carolina at Charlotte. Additionally, all participants were Psychology majors. Poor performance by the sample was noted on financial based measures. Estimated IQ, established by the Wechsler Test of Adult Reading, was found in positive correlation with scores on the Independent Living Scale Money Management subtest, Digit Span Test, and Trail Making B. The sample scored poorly on the financial literacy measure, scoring below norms based on education and gender. Estimations of arithmetic ability, derived from scores on the Wide Range Achievement Test, was found to be the best predictor of financial capacity, and the overall combination of the Wide Range Achievement Test, IQ, and financial literacy predicted a large percentage of variance among participants.